Countries

Publication year

Some market participants and notable economists are arguing that Greece needs to exit the eurozone, even temporarily, in order to regain its external competitiveness. As attractive as this option sounds, we are inclined to strongly disagree.

China has taken over Germany as the world’s export champion. But this is indeed a positive development for Germany and the government should actively pursue policies to rebalance the economy even more towards domestic demand.

Germany’s economy has contracted by a record 5.0% y-o-y in 2009. Quarterly growth in 09Q4 should be flat. However, the business surveys and the orders data suggest that economy has expanded moderately in 09Q4.

Ukraine’s country risk profile has improved somewhat recently, but overall risks remain high. A new government, controlled by the party of newly elected president Yanukovych, has taken power, which has ended the political paralysis and infighting of the preceding years.

The end of the civil war has boosted long-term economic prospects for Sri Lanka. The economy is expected to grow over 6% in 2010. However, the humanitarian situation remains poor since the government has failed to address the grievances of the Tamil minority.